Manufacturing division pushes KKB net profit up 39%

PETALING JAYA: KKB Engineering Bhd’s net profit rose 39.4% to RM6.93mil in the third quarter ended Sept 30 from RM4.97mil in the corresponding quarter last year.

In a filing with Bursa Malaysia, the group said its higher earnings were attributable to an improved margin from the manufacturing sector, in particular, the steel pipes manufacturing division, which had contributed to the group’s overall improved bottom line on the back of higher revenue achieved by both the engineering and manufacturing sectors.

During the quarter in review, KKB’s revenue more than doubled to RM112.18mil from RM49.31mil, while its earnings per share rose to 2.69 sen from 1.93 sen.

For the cumulative period, KKB posted a net profit of RM10.04mil, or 3.89 sen per share, compared with a net loss of RM3.7mil, or 1.44 sen per share. Its nine-month revenue rose 94.1% to RM269.94mil from RM139.1mil.

KKB said with the existing contracts in hand and the ongoing construction works for the development and upgrading of the proposed Pan Borneo Highway in Sarawak, the group remained optimistic that both its engineering and manufacturing sectors would perform favourably towards a sustainable growth for the financial year ending 2018.

KKB’s shares fell half a sen to close at 90.5 sen yesterday.